Lowe’s earnings up on strong sales

MOORESVILLE, N.C. ― Lowe’s a healthy increase in the first quarter, with net earnings up 31.4% to $884 million on sales of $5.2 billion, which were up a healthy 7.8%. Same-store sales for the quarter increased 7.3%, with comp sales for the U.S. up 7.5%. Growth in both transaction and average ticket helped boost comp sales, said Bob Niblock, Lowe’s chairman, president, and CEO. The first- quarter results include an unrealized gain on a foreign currency hedge entered into in advance of the company’s pending RONA acquisition, which increased pre-tax earnings for the first quarter by $160 million. The company’s outlook for 2016 includes an expectation that sales will increase about 6%, with the addition of a 53rd week accounting for 1.5% of that lift.